Click to play videoNew Delhi: After weeks of deliberations, Petroleum Minister Murli Deora on Wednesday announced that petrol prices will be hiked by Rs 5 per litre while diesel prices will be raised by Rs 3 per litre. The increase in prices would be effective from midnight tonight.
The Government also said that prices of LPG will be hiked by Rs 50. However, there will be no increase in kerosene prices, he added.
Speaking to CNN-IBN minutes after the press conference, Deora justified the Government's decision saying, "Forget about rollback, we had no option but to take this step. PM will explain to the nation on the need for rise in prices. We should also remember that nowhere in the world is kerosene available at Rs 9."
Following are the highlights of the decisions on petroleum sector taken at a meeting of India's Cabinet Committee on Political Affairs, presided over by Prime Minister Manmohan Singh:
- Petrol prices to be hiked by Rs 5 per litre
- Diesel to be hiked by Rs 3 per litre
- No hike in kerosene prices
- Cooking gas to be dearer by Rs 50 per cylinder
- Hikes to take effect from 12 am on Thursday
- Petrol to cost Rs 50.52 per litre in Delhi
- Petrol to cost Rs 55.51 per litre in Mumbai
- Diesel to cost Rs 34.76 per litre in Delhi
- Diesel to cost Rs 39.08 per litre in Mumbai
- Import duty on crude oil reduced to nil from 5 per cent
- Import duty on diesel and petrol cut to 2.5 per cent from 7.5 per cent
- Excise duty on petrol and diesel cut by Rs 1
- Excise, tariff cuts to cost exchequer Rs 226 billion this fiscal
- Oil retailers to earn Rs 211 billion more this fiscal due to hike
- Government to issue oil bonds worth Rs 946 billion to help oil firms
Petrol price movement since 2004
Months | Delhi | Kolkata | Mumbai | Chennai |
24-May-08 | 45.56 | 48.98 | 50.54 | 49.64 |
15-Feb-08 | 45.52 | 48.95 | 50.51 | 49.61 |
6-Jun-07 | 43.52 | 46.86 | 48.38 | 47.44 |
16-May-07 | 42.85 | 46.86 | 48.38 | 47.44 |
1-Mar-07 | 42.85 | 46.9 | 48.41 | 47.48 |
16-Feb-07 | 42.85 | 46.92 | 48.45 | 47.51 |
30-Nov-06 | 44.85 | 48.99 | 50.58 | 49.67 |
20-Jun-06 | 46.85 | 51.07 | 52.71 | 51.83 |
5-Jun-06 | 47.51 | 51.07 | 53.5 | 51.83 |
6-Sep-05 | 43.49 | 46.9 | 49.16 | 47.49 |
20-Jun-06 | 40.49 | 43.79 | 45.93 | 44.26 |
5-Apr-05 | 37.99 | 40.89 | 43.23 | 41.25 |
1-Apr-05 | 37.99 | 40.89 | 43.23 | 41.25 |
15-Nov-04 | 37.84 | 40.89 | 43.23 | 41.25 |
4-Nov-04 | 39 | 42.1 | 44.49 | 42.51 |
31-Jul-04 | 36.81 | 39.83 | 42.15 | 40.15 |
15-Jun-04 | 35.71 | 38.69 | 40.96 | 38.96 |
The Union Cabinet chaired by Prime Minister Manmohan Singh took a slew of measures to offset the surging global oil prices that had put the national oil companies under acute pressure.
As part of measures, the Government decided to take a burden of Rs 94,601 crore for which it will issue oil bonds to state-run BPCL, HPCL and IOC which were reporting a daily loss of over Rs 720 crore.
In addition, the oil producing PSUs like ONGC would shell out Rs 60,000 crore through discounts to state-owned oil refiners and marketing companies.
But despite all the measures, there would still be a gap of Rs 29,000 crore, Revenue Secretary P V Bhide said.
According to reports, oil companies have been suffering huge losses to the tune of Rs 225,000 crore per year.
Accessing the situation, Prime Minister Manmohan Singh on Wednesday night will address the nation to explain the reasons for the hike, a second since the year began.
Meanwhile, international crude oil prices continue to fall. Crude oil futures dipped below $127 a barrel on Tuesday, even as many worry that supplies are barely meeting growing global demand.
In the last 12 days, the prices have fallen back sharply after climbing above $135 a barrel on May 22.
Meanwhile, The Left will hold nation-wide protests from Thursday and has declared its intention of holding bandhs from June 5-11.
World's costliest & cheapest petrol | |
Country | Price (in Rs per litre) |
Turkey | 113.30 |
Norway | 112 |
United Kingdom | 95.50 |
Hong Kong | 84.10 |
Brazil | 66 |
Canada | 57 |
India | 45.56 |
Pakistan | 44.80 |
The United States | 44.25 |
| Russia | 42.275 |
| China | 31.30 |
| Malaysia (Kuala Lumpur): | 25.40 |
| United Arab Emirates | 15.65 |
| Saudi Arabia | 5 |
| Venezuela | 2.12 |
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